Gascoyne Resources (ASX:GCY) reports that drilling the westerly-striking extension of Gilbey’s North prospect has delivered a new ‘record’ intercept and confirms a ‘substantial’ new high-grade lode discovery.
The company reports this new substantial new ‘high-grade’ lode system is on the immediate western flank of its new Gilbey’s North prospect, which is located less than 1km from the company’s 2.5Mtpa processing plant at its 100% owned Dalgaranga Gold Project in Western Australia.
Gascoyne’s share price skyrocketed 29.63% to $0.350 as of 10.30am AWST on the back of the announcement.
‘Exceptional’ new results include:
- 59m @ 12.5g/t Au from 139m including 13m @ 51.1g/t (DGRC1110)
- 39m @ 3.09g/t Au from 99m and 20m @ 1.12g/t Au from 156m (DGRC1109)
Of particular significance at the prospect are 3 holes drilled at three different orientations. Gascoyne reports these are DGRC1110, the subject of today’s announcement, and the previously announced holes DGRC1026 and DGRC0971.
These holes together have successfully tested the north-south, northeast-southwest, and east-west orientations respectively of the ‘very high-grade’ west-striking and steeply plunging “Never Never” lode system at Gilbey’s North.
Together with the other recently reported results from this newly discovered east-west oriented mineralised position, today’s announced standout intercepts confirm the consistent width and continuity of the ‘high-grade’ “Never Never” lode, part of the exciting Gilbey’s North near-mine discovery.
Gascoyne reports that the drilling which delivered these ‘exceptional’ results was oriented in a northerly direction to specifically target the definition of approximate volumes across-strike and up-dip of recently reported ‘high-grade’ intercepts.
The change in drilling orientation has resulted in a major exploration breakthrough at Dalgaranga, resulting in the discovery of a new style of mineralisation that sits roughly at right angles to the predominantly north-south orientation of most of the known deposits.
Ongoing drilling across Gilbey’s North, East and South, as well as Plymouth, Sly Fox and other near-mine targets forms part of the overall strategy to grow Resources and Ore Reserves and extend the mine life at Dalgaranga.
“It’s not every day that you see results like this in the WA gold sector”
Commenting on the results, Gascoyne Resources Managing Director and CEO Simon Lawson said: “It’s not every day that you see results like this in the WA gold sector and we are incredibly excited by the potential of this newly discovered lode system on the western edge of the Gilbey’s North discovery.
Finding a northerly extension to the main Gilbey’s system was itself a major discovery coup for Gascoyne earlier this year.
Being situated right in front of the mill and at a time when the company and its loyal investors needed some vision for the future, our team and our aggressive drilling strategy came through.
To then back that up and discover a completely different style of consistently thick and very high-grade gold mineralisation in the Never Never Lode – an ore body style that has immense potential – is a remarkable achievement by our exploration team and has the potential to reshape our future very quickly.
I have been fortunate to be a part of some great stories in my career, starting with Jubilee Mines and its A$3.1 billion takeover by Xstrata through to the genesis of Silver Lake’s Daisy Milano mine and the incredible rise of Northern Star Resources from its origin at the Paulsens gold mine.
I have seen some amazing gold and world-class mineralisation, but I have never seen consistent grades and thicknesses come from a new target like this. The power of a good geology team and a great drill crew being brought to bear on a fertile high-potential mineral system is immense.”
Gascoyne reports that it currently has 2 drill rigs on the “Never Never” Lode, one RC rig and one diamond Drill rig, and it is aggressively chasing this ‘exciting’ target.
As the CEO and MD notes: “We will change the future of Gascoyne one drillhole at a time.”
Gascoyne is a debt-free Australian gold producer which operates the 100% owned Dalgaranga Gold Mine, situated in the Murchison region of WA. The operation is underpinned by a modern 2.5Mtpa CIL gold processing plant which is a strategic asset in the district.
Dalgaranga produced more than 71,000oz of gold in the 2022 financial year. While production is currently sourced predominantly from the Gilbey’s and Plymouth open pits, Gascoyne has enjoyed recent considerable near-mine exploration success which has highlighted the potential to develop new higher grade ore sources within a 1-2km radius of the existing plant.
These near-mine exploration activities are currently a priority focus for the Company and will feed into an updated Mineral Resource and Ore Reserve statement and medium-term mine plan, due for release in the September 2022 quarter.
Images: Gascoyne Resources Limited
